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tv   Market Makers  Bloomberg  November 7, 2014 10:00am-12:01pm EST

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thought when the gun to the belly of the october selloff especially in equities, i did not think managers would come back and size. i think they are now seeing the potential for really strong last quarter. >> interesting stuff and thank you for that. we are "on the markets" again and 30 and minutes but "market makers" is next. >> live from bloomberg ad court is in new york, this is "market makers." >> the labor market is on a hot streak with employers adding more than 200,000 jobs for the ninth month in a row. the u.s. economy, can it withstand the global slowdown? >> happy birthday twitter. when we start making money. a year after the ipo, there are questions about the company's performance. >> two foreign retailers fight for your dollars and their first battleground is new york city. welcome to "market makers," i am
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stephanie ruhle with a very special guest. >> you're not talking about me. i'm matt miller in for erik schatzker. we have been together all week and i have not mastered reading the intro's. >> that's true. let's get to the news, the most important part of your morning. >> i will kick it off -- we have not seen unemployment is low in six years for a ninth straight month. employers added more than 200,000 jobs in the jobless rate to 5.8%0 of one percent and hiring was broad-based and factories and construction companies and retailers added employees. the dollar still fell while treasuries rose because employers actually added fewer jobs than had been forecast. there is speculation that interest rate hikes may be put forward. at ford, a high-level job swap with the top marketing executive being sent to run the money-losing european division. the move is aimed at retaining farley by giving him experience and he was once considered in the running for the top job of
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ceo. the outgoing european chief stephen o double take as marketing job back in detroit. ford is projecting a $1.2 billion loss in europe this year. tv contracts or pro basketball and football are cutting into yuppies profits. disney posted quarterly earnings that beat estimates and movie profits help offset the rising cost for sports programming at espn. the disney ceo bob iger is not a big fan of unbundling. they have no plans to offer espn or the disney channel on the standalone basis. >> we've got a multi channel bundle that is creating tremendous value for us and great value for the consumer. there is no reason as far as we see to do anything rash or do anything that necessarily or that damages it for the long term. >> shares of disney are trading lower today.
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has found a way to keep staff from leaving in the wake of bill gross his departure. pay them more -- the firm introduced a $279 million award program. and employees and clients were rattled when bill gross. left. the election,er president obama sits down with congressional leaders with both sides saying they will work to get rid of the gridlock that has plagued washington. dan pfeiffer spoke with us. >> we will look for every opportunity to work with them to get something done. we know it will be hard and take a lot of effort on our art and create change in behavior but that would be great. that is what is good for the country. the president says we have two years to move the ball forward in congress or on our own. >> one thing we will see for sure and capitol hill is how speaker john banner will vote
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again on repealing obamacare. >> we know it ever focused on today -- the jobs report. payrolls expanded by more than 200,000 jobs, the unemployment rate ticked lower in the -- participation rate ticked higher. what does this mean for the next fed move? 200,000 jobs, we have seen this now for nine months straight. -- should we be having a bull market partly? >> during expansionary periods over the last 20 years, 200 jobs per month is about what you do. we are doing better than that. the six month or 12 month average, 200 20-240,000 jobs per month which is good. the unemployment rate is 5.8%. the numbers are pretty good. when everyone ago was crying and ready to jump out a window and saying we are falling off a cliff, where did that come from and how are we back to the moment where the
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economy is great. >> i think you're going through a significant divergence, global growth versus u.s. magnet -- manufacturing in the u.s. has been trending about one percent the last few months and europe is doing the exact opposite. it has been slower or stabilizing. the global economy is still slow. japan is slow getting stimulus and europe is slow but the u.s. economy, a closed people are worried about exports falling up because of the strong dollar. do you think that is not as much of a concern because we are a closed economy? >> you always hear people say it's a balance because x or through a but to have an energy benefit but it's not balance them of those are two separate issues. when you look at energy in the system and vehicle miles traveled, you get a tailwind that hits the u.s. consumer.
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if you look at the number today, you are seeing income levels grind higher and you're getting this big boost coming from lower energy prices that comes through the system that is more significant than any falloff from exports. why aren't we seeing wage growth? one out of every five jobs that were treated last month for waiters and bartenders are not reaping the benefits of high-paying jobs. how do we need to address this? >> one issue is that there is a lag effect. it usually takes six months or so before you see it come into which. -- into wage. we study aggregate data and we are living in an economy that is bifurcated. you have skilled labor where you see significant price pressure. jobs, the onese that are being taken over by technology where you see no price pressure. and no wage pressure.
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when you aggregated together, it looks modest. when you look at job openings and jobs that are hard to fill, the people who have skills, there you see tangible growth and you will see more and more of that over the coming months. >> there is a debate going on between economists, academics, there areals who say disinflation or a forces at play in the internet which says there is inflation. what do you think about that? you don't see any inflation and wages. you've got a zero hedge and pulsing argument that there is inflation that somehow is being ignored. i'm not sure what the argument is. there are a couple of real governors on inflation. one is technology and innovation which is literally deflationary.
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price and production is deflationary. it's creating a head when but you have an economy growing almost two percent inflation and is bucking the trend of the deflationary forces. when people say it's inflation or deflation, the u.s. is in pretty good shape in terms of inflation being close to two percent while you've got big headwinds. you look at europe and you look at these same headwinds but you are not seeing enough aggregate demand or enough gdp growth. you have potential deflation there. >> udc some prices of the grocery store going up so some stuff you need to have to live is getting mark spencer. 11's are getting more spence of every year if you want to buy a porsche. wages are not rising to quickly so it does not seem like you are seeing inflation. is the fed ever going to raise interest rates? why in the world today is it
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the two percent goal of intent -- of inflation? we are not living in that environment and i would argue that given the improvement in employment, we are not at zero percent funds rate emergency standing anymore. you can start to raise rates despite the fact that inflation is not up or above your goal. they can still start to move. waiting we think is dangerous and the distortion in the markets it creates is significant. >> early this week, we sat down with the dallas fed president, maybe the most hawkish one out there. >> if we wait until we've achieved what we consider to be a natural rate of employment and/or our inflation target is right on spot, history has proven that every time the fed has done that it has been had to tighten and has driven us into recession. >> he basically agrees with you but what about other members of the fed? statementt fed
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started to suggest that maybe some movement towards what we think is the start to move probably in june of 2015. they can still move sooner but we think you are starting to see movement. the last statement was significant in terms of recognizing improvement in labor and that they are closer to their goal. no doubt that many members of the fed are more dovish and more patient with regard to moving the rate but i think you are starting to see a transition of where they are starting to move. once they start, it will be deliberate in the pace but clearly, i think they are starting to move. people shouldls stop hating the fed as far as who is doing anything. the fed is the only game in town. it's not like washington is doing anything to help the economy. would you agree? >> i do, we have no fiscal policy which is why we have excessive monetary policy.
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japanink about why improved is because you have fiscal and structural and monetary policy. in europe, all eyes are on mariota druggie. -- mariano druggie. -- mario draghi. there are other tellings of economic growth. >> are you optimistic for fiscal policy note the white house and congress will get along and start compromising? >> i am. there is some level of skepticism but i think that now -- it is probably two or three issues like tax reform and energy where you will start to get some movement. i don't think it will be on 50 lashes but i think on two or three significant issues i am optimistic you'll get movement. i'm more optimistic today than two or three weeks ago. >> the election night was a big night for chris christie. not only does he look great but it was a big win for him. you are a new jersey guy, do you
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think he will run for president? >> i don't know. my gut would say yes. i don't know how much hit he took for bridge date -- gate? >> were you stuck in traffic on the george washington bridge? >> that day i was not. there is probably a result chance he will get pressured to do it. at the heart of it, i think you would like to. >> are you looking forward to this election season? i think there's opportunities in the marketplace. thatll get some volatility we got some volatility and october which was great. >> david einhorn said he wishes there was more time. there were very few investors saying this is a great buying opportunity. you were. >> we talked about the high-yield market coming under pressure and i would argue that was the concern about selling. there were great high yield opportunities and great opportunities in parts of the
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emerging world. i guess i would probably err on the side of saying i hoped it was longer but it's nice when it ends. >> active managers love to see some volatility. >> that's true. >> thank you so much. always great to get your thoughts especially on jobs day. >> when we come back, one year after the ipo, twitter is still struggling to get it right. we will discuss dick costolo's moves. >> h&m goes head to head with his british rival. ♪
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>> is the first anniversary of twitter as a public company but it may not have a lot to celebrate. there is a chart of the stock since its first day close, down nine percent, down 10.5%.
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user growth is slowing of the company continues to lose money and it does not expect to make a dime of profit until 2017. many were saying the same thing about facebook a year after its ipo and it's one of the best-performing stocks in the s&p 500 since then. let's take a look at the last year of twitter and its future with cory johnson. >> your arithmetic is not so good. the company's predictions about profit -- >> starting a segment dogging the anchor -- for shame. haven't you learned your lesson? >> it's not you it's him. ofst of all, the construct the story i love because it points out a lot about how twitter sees itself and what they are trying to do and how the world in particular and how new york looks of the company. the stock is one year old. the company's many years old.
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the ipo was a big event for the. company because of the context in which it happened groupon and zynga and facebook and linkedin and this new pile of ipos in the world of technology. some of those companies, the ipo was the event. groupon tried to make the results look at before the ipo. zynga change their accounting to make the numbers look better than they were before the ipo. in those events, it was all about the ipo. you can see the reaction to the stocks which have fallen dramatically twitter and facebook and linkedin are at different because they are tying to build a business. the twitter ipo was a very important event for people of the company, there was staff changes and people hung on waiting to cash out, the business of twitter, they've always had the tiger by the tail. they have this amazing idea that resonates with a certain amount of people. we are on twitter like crazy. we get the platform but the user
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growth issues have been an issue for them. the way they show the product and sell the product has been very difficult to expand beyond the core base. the slowing growth is a big issue for this company. >> i sometimes wake up in the middle of the night to check my twitter so i am on it all the time. i don't ever buy stuff on twitter. how are they going to make money? >> advertising works. from the revenue per user that advertisers are starting to figure out how to use twitter and twitter is trying to figure out how to get advertisers to pay. advertisers are paying hundreds of millions of dollars to get in front of twitter users. you don't have to make a purchase for something to be valuable on advertising works. can they grow this to a big enough size and can -- i think the size of the audience still the issue. the monetization is very impressive and i think it's also about advertisers figuring out what kind of ads to right for
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twitter and what kind of users they want to target and the ability of twitter to find just the users they want. the user base is big, 200 84 million people at the end of the last quarter but they need that to grow more. the specialization within the promise.s the real they are using technology to target just the right people to the ads do not feel like ads, they feel like viable content and the advertisers are reaching the they want to reach. >> let's compare twitter to facebook for a moment. costello told emily chang there'd goal is to get the user base bigger than facebook. if you look at twitter, post-ipo and facebook post-ipo, facebook wondered how they would address mobile. they crested. this is facebook's first year. let's look at twitter now.
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facebook is going up and now twitter -- bam - is the issue that there is simply no clear strategy? we like the platform and the idea but we also don't have a clear competitor to twitter. couldn't one come in right now because they have not found a second act? if i did graphics for that, you are looking at what the stock is doing. that's about buyers and sellers. if you want to look at revenue growth, or operating profits -- >> look at revenue for a tech company? >> imagine that or operating profits. i even think adjusted operating rockets which are usually a scam but in the case of twitter, they back up the right things. you can see real progress in the business. it's a small business still relative to its market cap. about the dynamic
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between a growing business getting more profitable on the adjusted level and business is getting better. but it's getting better more slowly particularly around user growth. dick costolo is brave. the business is getting better and the stock is really expensive. maybe the stock continues to go down as the business continues to get better but fundamentally, they will have to have a better business to support any kind of stock growth. >> why does it seem so much faith has been lost in the twitter senior management? journal"ll street these goes after them. >> ouch, that's rough. >> when you have a job and you and you know how
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difficult the company is and you know how match changes are going on behind the scene and you wonder have been everyone in the world not know how crazy this places. i worked at jobs like that. people seem to know what is going on at twitter. it's a difficult place to work and has tons of staff turnover. they have not had a product line that can appeal to lots of people and that will ultimately be the success for this company. those changes -- the staff changes make it harder to do. >> cory johnson's last appearance on bloomberg television. media is notsocial the only thing, players are losing interest in flagship games. ♪
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bigoming up, shares of two
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game makers arising after tough times. we will be back in two minutes. ♪
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>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> welcome back. ? >> the makers of candy crash in a banner are having day. johnson,ng back cory to talk about the future of both of these companies.
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is there a future of these companies? we talked about these results last night. it shocked me that think it is worth half of king digital. nga is worth half of king digital. king digital has always been a mobile company. millione almost 500 users. >> 500 million people are playing candy crash each month. that is insane. if you really think about zynga, people used to play games on facebook. what they were able to do, is that they were able to go up in popularity when facebook was popular. people were not that loyal to
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zynga. whereas king digital has a loyal network of users. what they are dealing with is that as they play games all caps, they need to get the loyal audience. they have made the first steps toward that. >> do you want to weigh in? been playing donkey kong and all of those for so many years. >> most of the revenues now are digital. it is one thing to have a great winners likee farmville and can be crushed. but the ability to replicate machine, to have a company that can manage creative talent and manage that
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in the right industry. the gaming business is huge. there are more revenues coming out of gameplay and there are out of movies and books combined print we talk about the movie business like it is a great big business, but we do not have a broader cultural impact. but there are so many playing games, and it is a great trend, that you can see why people are allocating resources to be in mobile. 49% of the revenue comes from all of their other games, about 51% is an candy crash. crush.andy that 500till shocked million people play it. >> it is a massively profitable business. >> king digital is a $4 billion company.
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zynga is a $2 billion company. both of them arising today. where do you see them headed? crush islike candy a cash cow that will continue to give milk, but zynga seems to be drying up. >> was that a farmville pun? >> king digital has a very lean structure. so for them it is really about the sequel to their franchise. they are not doing that and at zynga, so for them it is about leasing their brand. it is about having more games on an aggregate basis. >> remember when faced work was almost tied to zynga's earnings report? facebook filing,
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and say so much of the revenue comes from zynga. >> 10%. i think what we have seen is that facebook has pivoted in many ways, not just figuring out mobile and making most of the revenue come from mobile, they have also recognized that it is about twitter users. payments is a percentage of revenue. it still has fallen off, even though it is a lot bigger. >> you have to pivot in silicon valley. cory johnson, thank you for joining us. we're going to take a break. >> from fashion to celebrities. the latest selling point for h&m.
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>> today we are lucky enough to speak with the president of one of the top retail brands in the world. andemploys 116,000 people, created 12,000 new jobs last year alone. so on jobs today we are happy to welcome the h&m north american president to get his take on what economy looks like retail respect. -- perspective. yesterday launched a very special collection that maybe -- >> they are sold out. >> jobs report today. from an h&m perspective, we to 4000 new people hired in america.
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have fashion quality and the best price. lot becauseelling a people want value, they want fashion. at the same time, you see a strengthening in the economy, the job rate, the unemployment coming down. you,at does it mean for top shop has a store in new york, but they have come in a big way with beyoncé on the marquee. is that a threat? >> we like competition. we like to have competition around us. at the end of the day, the customer decides. and with our fashion, our quality, the best arises, i know how to make the choice. line yesterday. we are building our new flagship on howard square. so we are already here, and we are very strong base in manhattan. we like competition, and we like
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them close to us, because the customer decides. fastsically h&m came here, --and came to america, and - fashion came to america. everyone is facing you on your level. 13 years to have 350 today. american people are starting to understand. like to see a phenomenal value, something new all the time. in the toughest markedly world, it is starting to see that h&m is a strong brand. >> this is not your first liberty partnership. you have done this with ella mccarty, alexander wang. does the mass-market customer
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even know who he is? >> for sure. started., we we are the first retailer out there collaborating with top designers, to bring luxury to the masses. to bring them high-fashion and audible prices -- affordable prices. one of the hottest out there right now is alexander wang. we are very happy to have an american designer. and now on the street use can you can see the crossover fashion and sport. and that is exactly what the customer is asking for today. are alexander wang goggles. -- we do notw how know how popular they will be -- >> they are sold out. people cannot buy a lot of
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the jackets, because it is a very limited supply. >> we like the exclusivity. and the customer knows they need to be the first at h&m. that next weekw we're going to have this new item. and have a designer collaboration, since the demand has been so high, far above expectation, in the end we are very happy. be so expensive for you to do these partnerships, and for him to show at h&m. you have to be giving him a big chunk of the profits. investment?xpensive >> this is an investment in our customer. in the retail today, you need to
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be giving back to the customer. iconme and buy a top brand, it is a fantastic gift to the customer. >> are you able to move those prices up as pricing power becomes palpable in the last year? it has been difficult for automakers to raise prices, and they have been trying. fashion, good quality, affordable prices. we will be checking our prices every day, and seeing what the customer is prepared to buy on that single item. we have not raised any prices this year, and it depends on the make of the product. >> if you looked at your sales price over the last year, would it rise or be flat? >> b-flat. would be flat.
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we see that they are picking up more pieces when they come in. picking up person is more items, the repurchases going up. >> do you track if they are buying other h&m gear when there in the store? >> yes. we see that when they come into by alexander wang, and we have a line, when you're in the and you couldn't go around shopping while waiting for your alexander wang urges -- and you could go around shopping while waiting for your alexander wayne purchase. from girlfriend, who is
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spain, will buy her entire h&m.obe from do you see more people switching over to the european model? >> we have 350 stores at the moment. we are seeing is pickup. americans are more interested in fashion. they know that the american customer is very value-oriented. if we have the fashion on the value, it comes down to we could do expansion. >> what is your big challenge? >> we don't see one. >> not one? >> we are now launching new stores. we have a new brand. fashionntemporary for females. we opened up tito weeks ago in weeksgeles -- two
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ago in los angeles. we have opened up a lot of stores. we have online, we have multi channels. >> if you can sell these goggles, you can sell ice to an as,. you can sell anything if you sell a lot of these. i> those are skat glasses. gaga,y bennett, lady alexander wayne. if there was an artist you could collaborate with, who is on your target list? >> that is going to be a surprise. i will tell you when i have it. >> nobody you're looking at? >> he can't tell you, because then that person raises the price that they want. we always want to price to
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the customer. so you have to wait and see. >> congratulations. they are all sold out of these. but you can see them here. coming up, you may vote how you shop. ♪
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>> we all know what really happened after tuesday's midterms. the start for campaigning for 2016's presidential election. the clinical
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leaving of brands like starbucks and pizza hut. -- political leaning of brands like starbucks and pizza hut. >> we are not talking about the ceo clinical affiliation, weird looking at store locations of that company. >> the regional location of these brands. >> correct. they looked at the district vote in the midterms, and this is what you find. has 83% inparel democratic congressional districts. i don't mean to diss time magazine, but this is incredibly unsurprising. what do you expect? j.crew, 71% democratic, 49%
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republican. democratic.ers 51% >> that is a surprise. i'm a midwestern boy. i went to brooks brothers in columbus, ohio. kroger is in democratic, the reston rowboat republican.est in >> democrats are the skinny people. the republicans have pizza hut, walmart, and mcdonald's.
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>> we also looked at democrats. -- department stores. these are places where you go to save money. >> also in the blue spectrum, ben & jerry's, trader joe's. >> what a surprise. >> so just to make it glare, all of the forward thinking is democrat. >> i do not think so. there are a few that are evenly split, because everyone loves it. belk is a southern department
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store chain, so would make sense that it is in the republican districts. spreadou're evenly across the map, you're right followed by red zone, because if you look at the map he middle of the country is right. the middle of the country is red, the coasts are blue. this off thefor charts. bloomberg is about to take you on the markets. we have a look with julie hyman. eddie lampert is having a good day. >> a long awaited good day. investors have been waiting for results, these
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something bigger out of the chain. with the company says it is considering the sale and lease of 200-300 stores. store and thenhe still occupied the store on a lease. unlocking this enormous real estate value that investors have been wanting to access the years. -- four years. years. unquestionably, it is a large portfolio. the company also says it may spin off all of those real estate holdings into an investment trust. that investorsng have been talking about and speculating about for quite some time. the background to this is that the main business have been struggling. shares are up big. ♪
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>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. the job market is on a roll. the unemployment falls to a six-year low. employers added more than 200,000 jobs or the ninth ring month. -- for the ninth straight month. this airline does not care if you cannot stand it, it is part of its marketing plan. >> 25 years ago the wall came tumbling down. now the former site of the wall is one of the hottest neighborhoods in the city.
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."lcome to "market makers i lived very near that neighborhood at one time. the topke you to stories of the morning. we have not seen a slowdown in the labor market so far. for the ninth for each month employers added jobs. the unemployment rate fell to 5.8. that is the lowest we have seen in six years. one red flag, wages are not rising. chair janet yellen comes out in favor of central bank intervention. whateverthey must do it takes if governments will not use tax dollars to stimulate their economies. yellen is speaking to the bank her remarks come
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as policymakers are divided over how far they should go with the stimulus plan. and a big surprise at pepsico and one of the favorites to decided to ceo has retire. been there for almost 20 years. there is no official word around why he has decided to retire now. the current ceo has been ceo for eight years, is 59 years old, and shares are up 17% this year alone. and this bigger of the house has a warning for the president. he says he would invite very trouble if he change his policy without involving congress. >> i have made clear to the resident if he acts unilaterally on his own, outside of his of
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doherty, he will poison the well , and there will be no chance for immigration reform moving in this congress brave in a simple as that. >> i am pretty sure there is nothing simple going on between rob republicans and democrats in washington -- republicans and democrats in washington. zuckerberg to her in this first public q&a session. serious questions about privacy, and not so serious ones about why he wears a gray t-shirt everyday. >> i feel like i'm not doing my anyif i spend on things thaty are not important everyday. >> he thought the film muted
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bunch of stuff -- made a bunch of things up, and he found it hurtful. >> that is no surprise, but i thought it was entertaining and good. back to jobs. team haves of our spent all morning analyzing the numbers. betty liu broke them on her show, and had a lot of insight from some of the world's top economist. we have one of them right here. josh wright used to work for the new york fed bank, and he joins us to break these numbers down. betty, you broke the numbers. better than i acted, not quite consensus? >> not quite consensus. under shot estimates. rate coming down, that is always good news for the american public. they like to see, no matter how imperfect it is.
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alan krueger said news a .oldilocks scenario for the fed there seems to be very little wage inflation in these numbers, and so it seems about right here where they say the economy is growing but not no enough for them to move interest rates. the jobs filling market is still tough. they feel in a recession. that is why we see what happened on tuesday. >> even though 60% of americans have a job? >> but how good of a job? one of every five jobs created were bartenders or waiters. they were in the lower wage paying industries. bartenders and waiters do not even get tips in some restaurants now.
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>> i was a waitress. >> i was a bus boy. >> i was a waiter. >> again, it is this whole idea of that the story about the jobs market has really changed in the last 18 months or so. it was less about how many jobs are we creating. it is about 200,000 now on average. getting a higher paycheck? that is now the story for the and for the investors as well, as they look to see what the fed will do. >> it is all about slack. that has been the theme this year. >> asked lane that we hear economist say that all the time. -- explain that. we hear economist say that all the time. >> traditionally you look at the top line payroll number, how
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many people are unemployed, how many jobs were created. ist we have going on now there something different. that means that we have to read the numbers differently. those two numbers are not as represented as others. the fact is that some of these secondary things are now front and center. we do have really clear trends in actual job growth and unemployment. it is really number one that people are concerned about where that goes. >> wage growth, what are the statistics and measures you look to see how many people are working part-time jobs that are wanting to work full-time? out in the report to see that today. we saw some progress, which is good. report just affirms
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what we saw on the statement and previous months. characterization of the economy is gradually progressing. >> let's let it into real perspectives. what did bruce ratner have to say? >> he is a major donor and supporter of the democratic party. he is nursing his wounds a little bit. he has said time and time again that we should be raising the minimum wage. that income inequality is getting worse in the country. we talk about the fact that four voted to raise the minimum wage in their own territories. this is what he said this raising thet minimum wage. >> if you raise it to $15, that is a very different thing. but things like that have to be done. this are getting to
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point where we are so divided between the rich and the poor. >> we are talking about small hikes. $8.25 an hour. nothing like the $15 that these minimum wage protesters have called for. >> or even the $10.10 that the administration wants. >> does bruce ratner pay his employees more than the minimum wage? great question. that is determined by the vendors themselves. he talked about how he pays his employees who have developed the construction workers, he wants to pay them and he does, fair wages. was the election on tuesday a mandate for a higher minimum wage? how do economists view the minimum wage? it is like trying to
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artificially control prices. generally fed up, and we want government to do something. they want to see income inequality addressed their janet addressed. janet yellen wants to help people. >> when you take the line of what we will do is whatever it takes -- >> the president is going to come in front of you right now. he is talking about the jobs report. i want to listen in. >> all of this is testament to the hard work and resilience of the american people. they have been steady and strong , digging themselves out of the worst economic crisis since the great depression. we need to make sure we build on this momentum because we recognize that despite the solid growth but despite the drop in unemployment, there are still a lot of folks out there who are anxious about their futures, old raw having trouble -- or who are
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having trouble. making rent this month, saving for their kids college education, making sure they can retire with dignity and respect. everything we can do over the next two years is designed and geared toward ensuring that folks who work hard in this country are able to get ahead. obviously, we have had a significant midterm election. as i said at the press conference, my attitude has been and will continue to be that justideas do not come from one party, and i'm looking forward to seeing the leaders of both of your credit -- democratic and republican caucuses this new to share with them what i think we need to be doing to build on the momentum we have, but i also interested in listening to them in terms of areas where we think it is possible to work together. that is spreading people
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through struggle manufacturing in the united states, and selling more to the countries around the world -- one of the major topics in my asia trip next week. building on the modest new investments we have made an early childhood education. there are support groups for that around country. ones inhese issues are which there is a strong possibility of bipartisan cooperation. we set politics aside for a moment and focus on the people who actually senses here. in the meantime, in these regular meaning -- meetings i have with my cabinet, i have thememphasizing to from day one, and will reiterate in this meeting the fact that separate and apart from legislative activity, we have
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continually to improve how we deliver services to the american people. part of what has happened over the course of several decades is that people sometimes feel as if the federal government is it is not customer friendly, there is too much or hawker seat -- your rocker c, and because of what we have been able to do is start chipping away at some of the old ways of , and improves customer service to make sure that people are getting the help they need. this week i have a chance to and have a conversation with our new secretary of veterans affairs who is coming from the turco but also coming , a legacy ofnt service in the armed forces. what we are already seeing is
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that he is able to start skimming down wait times for people in terms of getting appointments they need. withreducing homelessness our secretaries. we have reduced homelessness by 30%. virtue oft by legislation, that is just us focusing more on these problem's , andanaging them better continually listening to the american people to see how they can be helpful. there are a lot of opportunities for us to do that here today. i'm taking him for doria of the progress that has been made very's. will also focus on the fact that between now and the end of the year there is some immediate or needs to be done. we have made progress in building the kind of public
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health infrastructure we need to deal with any eventualities with ebola, anda ball -- it is still a concern internationally. we will get reports from sylvia burwell, as well as susan rice, and others actively involved in that fight. and we will learn how the work we needed to be done with will make sure that the american people are safe. some national security issues that we have to make sure that our efforts isil are properly funded. that will be up to chuck hagel do. the bottom line is that as i have told my white house
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staff, we are extraordinary flow of alleged -- extraordinarily privileged that .e have a way to be a impact remindeden constantly of the hard work, so the community, sense of family that it is in every pocket of every corner of this country. the same values that joe grew up on and i were up on. i want to make sure that between now and when the administration takes over, that every single agency we're cross-selling finding ways to build on those --ues and to make sure that
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>> that was president obama speaking at the white house. it sounds like today, they are going to be addressing the ebola response. he did mention that the drop iswth is -- job growth stronger than in the 1990's. he also said he is willing to put politics aside. quite see said he will work with congress if all takes put our aside. politics is put when have politicians put politics aside? >> tuesday was a huge day. moment, a was a
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message from the american people that said enough is enough. let's bring in phil mattingly. what do we expect to get out of today's meeting? >> they are trying to set an early tone. what the president just said about politics, this is how they have explained to me how they are viewing this. political issues and ideological issues that they are not going to agree on. but there's a small sliver of actuallyere there are there is agreement. the idea is on those ideological issues that nobody can agree on, the president is going to do his own thing through executive action, and congress will do their thing through bills they will send him. however those things should not get in the way of the sliver of things they agree on. that is what the president is trying to say there. thank you. all eyes will be on d.c. in that meeting.
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all americans saying they want some level of change. >> how does that say they want a level of compromise? it seems to me they agree with the platform of the republican party. >> i think there's things so this that theyof want to change. they turn every advertising slogan they have heard. it is friday, so it is time to play the yearbook game. ♪
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>> it is the airline people love to hate. we are talking about spirit airlines, the one that does not provide a lot of the, and creature comforts. cheaper than its rivals. in his embracing its -- and so its reputation.
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they are participating in a study at offering free flights for those who participate. let's break this down. look at your fares. i look at a ticket from new york to chicago, and the base price is only $35 to $100. that sounds great. but now, let's go to the add-ons. i am not talking a massage and a pedicure. $45-$100. to print your boarding pass, $10.
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bag,u want to check your $21. is $35. bag the new ticket prices close to $500. add-ons?tay away from >> the total price that pay is about 40% right. while your graphic was good, it was not exactly right. what you have to pay for is the really big roller bag that goes in your bid. but if it goes under your seat, it is free. if you are to bring on a bottle of water, you can do that for free.
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the good of the thing about spirit is you pay for only what you save money on what you don't. that is why we save thousands of dollars a year. they don't get as much comfort in the sea, they do not get a free bottle of water, they don't get a meal, or wi-fi, but they pay less money. did, ihate survey you want to talk about that after. but tell us about your sales. >> they are great. an 18% growth year over last year, and next year were going to grow 30%. only about fare is $85 on a 2.5 hour flight. >> we're going to talk more about the common sense approach to air travel. a shocking approach to take. to tell you going
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about my experience as a guy who is six foot three inches. >> if you don't like it, take another plane. ♪
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>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> welcome back. we're talking with this year e spirit airlines ceo. i am 6'3", i am all links. egs. seats never work for me. what do why sit in -- what seat need to sit?
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we have the big front seat. it looks like a business class seat but it does not have a curtain or any amenities. >> the planes are still full. what you going to do after this survey? >> we want to align the expectations. we said we would give youth a thousand miles if you share your hate with us. we want to change the hate into love. is it that the flyers are unrealistic? one complained about not getting a deck of cards. that has not been since 1984 since that happened. to a car, ago
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restaurant, a retail store, there are different price points and different value points. car, a get a $20,000 eat forcar, you can $10, for $100. he did not expect the same car with the same meal. do not expect the same car or the same meal. you instate a coat anti-policy? policy?and tie and thebuy one ticket fit in two seats. that seems to be an american problem. about oil prices. many people are saying that gas prices are so low, so we should see our airline ticket go down. have already locked in those contracts and you're not benefiting? >> we are benefiting a little
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is, but oil is all is volatile. if we could be confident that it would stay low for a welcome inre would be a downtrend prices. but it could rise as fast as it dropped. >> how far out to you go? are you set for the year? >> we hedge our fuel in the short term. do not hedge all that much. so basically customers are buying tickets about 60 days in. vary. price tends to >> what about labor cost? about job stay in wages. we have not seen them take up for america -- tick up for
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america. average wage is about $75,000 a year. anotheroing to hire year, so wenext are good place to come work. >> are you getting good quality pilots? >> safety standards, you are a budget airline;.; . >> we fly under a federal regulation call part 121. they have to have the same kind of background as a delta pilot or american pilot. to us loving us because we are the fastest upgrade. andly modern airplanes,
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our pilots know what they are doing. >> you sound like you are a great opportunity in terms of a knack position target. we have seen so much code validation -- so much consolidation. >> we have too much growth on our own. we have a nicely rising stock price, we ipo to $12, and we closed yesterday and almost $78. >> check out the stock price. you mentioned it, but graphically it is surprising. >> we have a great balance sheet . >> investors expect a lot from you. >> and we are delivering that. employees do great in spirit because they have good stable employment and we are hiring. investors get also returns from
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us, and customers save a lot of money flying with us. >> if you do not want to get acquired, what about merging? >> why do i want to buy their problems? i guess i will fly spirit. >> sit in the big front seat. >> is at the airlines fall, or the weather? you wore a coat and tie, you got a little badge, you got a deck of cards, you were comfortable. >> it was glamorous. >> you need to fly private.
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we will be back with more. ♪
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>> coming up, it went from a symbol of communism to a museum fees. now the former site of the berlin wall is one of the most fashionable neighborhoods. >> 25 years since the fall of the berlin wall. itscity is moving beyond image. has exploded in an unlikely spot. to be the division between east and west berlin. and it has become fertile ground for high-end apartments. we're selling a lot of russian, northern american, scandinavian buyers.
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they buy something in berlin. >> part of the unification growth that is happening. five-star living but at three or four star prices. this townhouse follows the walls old line. four stories, a guest room, private bath, and a nice study. master bedroom, massive bathroom, and a tub with a view. and sauna in the penthouse. the prices are significantly cheaper than london or paris. with the housing shift, long-term residents are being priced out. 20 elections or
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today.-- evictions up 43% in the past five years. but wages have lagged, raising just for percent of the past three years. thethe disciples say spurs growth and they see open road ahead. i believe that this trend will continue. >> that could mean a ribbon of luxury where the wall once ran. fromd hans is with us now berlin. he makes the best television packages at bloomberg. snapping on the couch,
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his fingers for a little privacy. fantastic. , i lived in berlin for a long time, and there was the promise and of a bright future in real estate. it did not pan out 10 years ago. >> i have two questions. did you live in a squat? everyone lived in one of those 10 years ago, including angela merkel. and tell us how watch it wasn't deutsche marks -- was in deutsche marks. 4000 square feet i paid it 800 euros a month. it was very cheap. nobody moved there. everybody was out of work.
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>> there were still a letter freelancers. -- a lot of freelancers. rate has unemployment dropped tremendously. it is still higher than the national average. but you have some fundamentals lead to thisld taking off. namely you have some big dot com exit. that might lead to more luxury. and rents have gotten too expensive for average workers, and the being priced out of the city. gone up 50%, but they apartments.
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>> thank you for joining us from the city where my heart still lives. more "market makers" after the break. ♪
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>> we have had a very big week here. lots of great guests. boone pickens, the legendary oil titan talk to us about his thoughts on the oil policy. >> i want to get on our oil resources and get off of opec. republicans in here, they may think it was a good idea. coal is one of our resources. interesting to me is
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that he said that president obama has ignore the keystone pipeline throughout his presidency, but the time is here, he cannot ignore it and he has to address it. >> my favorite conspiracy theory is because warren buffett owns the railroads, that all of the resources are being shuffled back and forth to do him a favor. >> he came after opec hard. to terrorisms ties potentially, and we should not work with them. >> and he says the keystone pipeline is not a question of if anbut when. and richard fisher said don't fight the fed. >> the only acting talent that
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tells people what the -- act in town that tells us what to do and keeps it going is the fed. >> he is saying that congress actually needs to get there but get in gear-- to and get things done. we're doing what we do, do what you do. would be comical of congress tried to tamper with the fed with they cannot get their own act together. cannot disagree in terms of how the market has responded. the ad is the only game in time -- fed is the only game in town. listen to what they told us
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about competition and exchanges. a problem withe competition in the exchange world, but at the same time you have to be careful not to fracture the liquidity to the point where cannot be executed who were we benefiting -- executed. who are we benefiting? confidence is anemic, that is why volumes are so thin. we had a chance to ask him when volume spikes dramatically, did you see a lot of people all out of the market? we had the highest day ever on tuesday wednesday. are we seeing people like coming off of that? -- play coming off of that? they are chasing this wilbull run. york stocknew
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exchange tour guide, they like them. >> and the yearbook game. here are the clues. am is not one of the roo amones. ♪
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>> it is friday. we are going to wrap up the yearbook game.
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investor, he graduated in 1953. i will give you one more clue. he went to princeton university. >> he has an awesome beard. only, carl the icahn. >>? they have been guessing right every week. >> and think a lot of people got it. got it./
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>> he is an expert. have you never seen him at his mystery guest? >> it is my favorite segment. thank you. it has been a pleasure. erik schatzker will be back on monday. and celebrating veterans day we talking to eric schwartzman. but for now it is time for on the markets. we are on the markets, stocks ready much fluctuating after the benchmark indices closed at record highs yesterday. the jobs report is the most important these of information today.
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adding more than 200,000 workers for a ninth consecutive month. is the options trader for option hacker. a pretty good jobs figure that will translate into better income, and support the rally, no? >> right. we're seeing markets relatively unchanged but the actual number of jobs that we added over the was a little bit lower. but we're seeing markets move a little bit higher. we're back into an area where in ix, downside protection is cheap. icon out -- i can go out and buy protection very cheaply. isone stock we are watching
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disney. shares are at their lowest level since october 27. this was after the media and themepark company matched estimates and top revenue. >> we are not seeing a whole lot of action in the options market. it is hard to read order flow going into an earnings are order or after the report and see where these people are positioning themselves if there are a lot of differing opinions. the revenues were in line with expectations. the broadcast media group missed on revenue expectations, and that used to be one of the largest cash cows for disney. so that gives the 32 investors -- gives uncertainty to the investors. it is a good opportunity to buy some at a discount. >> why are you trading fossil? rename in the retail
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space that has been very weak this year. they have sold off three of the past four quarters on earnings day, and their reporting next week. at a downside target at $95. the 52e just off of high. >> thank you. we will be on the markets in 30 minutes.
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"money clip," way tied together the best stories in business news. and star disney movies feeling it.e not mark zuckerberg takes on his first public q&a. what he says about the social network movie. 25 years since the fall of the berlin wall. luxury condos next to the checkpoint charlie. supersized fries. -

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